ECOFIN

Lord Sassoon: My right honourable friend the Chancellor of the Exchequer (George Osborne) has today made the following Written Ministerial Statement.
	The Economic and Financial Affairs Council will be held in Brussels on 24 January 2012. The Chancellor will attend. The following items are on the agenda to be discussed (as of 20 January 2012).
	European Markets Infrastructure Regulation (EMIR)
	Ministers will have an exchange of views on the outstanding issues on EMIR. Trialogues have been ongoing since ECOFIN reached general agreement on 4 October. The outstanding issues relate to the process for authorisation of central counterparties (CCPs), and provisions relating to third countries. The Danish presidency is seeking a solution that retains the key principles of the council position while integrating a number of the European Parliament's concerns.
	On the authorisation of CCPs, the Government believe that the national competent authority must have a pre-eminent role. Therefore, any agreement should maintain the principles established at the 4 October ECOFIN. On third-country provisions, the objective should be the smooth functioning of the global derivatives market while providing ex ante legal certainty to market participants. It is important that jurisdictions recognise the global nature of the derivatives market and ensure that legislation enables the smooth functioning of this market in a safe manner.
	Proposals from the Commission on Economic Governance
	ECOFIN will hold a first exchange of views on two Commission proposals to strengthen economic governance. There are no direct policy implications for the UK as these proposals apply to the euro area only. The first proposal concerns strengthening surveillance of budgetary policies. It would require: euro area member states to present their draft budgets at the same time each year and give the Commission the right to assess them; closer monitoring and reporting requirements for euro area countries in excessive deficit procedure; and that euro area member states have in place independent fiscal councils and base their budgets on independent forecasts.
	The second proposal concerns strengthening economic and fiscal surveillance of euro area countries facing, or threatened with, serious financial instability. It aims to ensure that the surveillance of member states under a financial assistance programme, or facing a serious threat of financial instability, is: robust, follows clear procedures and is embedded in EU law. Under the proposal, the Commission would be able to decide whether a member state experiencing severe financial instability should be subject to enhanced surveillance. The council would be able to issue a recommendation to such member states to request financial assistance.
	The UK welcomes these proposals, as they will play an important role in improving fiscal stability in the euro area, which is a good outcome for the UK. The Government are however keen to ensure that, despite applying only to the euro area, these proposals maintain the role of the council and EFC.
	Presentation of the presidency work programme
	The presidency will present Ministers with its work programme. It has four priorities:
	a responsible Europe-making progress on financial regulation dossiers and multiannual financial framework (MFF) negotiations; a dynamic Europe-revitalising the single market and encouraging policies which stimulate EU growth; a green Europe-advancing energy efficiency and climate change initiatives; and a safe Europe-including combating terrorism and ensuring the EU speaks with one voice on international affairs.
	The Government agree that making progress on financial regulation dossiers is important, and will want to see budgetary restraint in the MFF negotiations. The Government support efforts to stimulate EU growth and strengthen the single market.
	European semester (including annual growth survey and EuroPlus Pact)
	Ministers will have an exchange of views on the second European semester. The Government believe that the European semester should identify and prioritise policy measures that promote jobs and growth. To achieve this, ECOFIN Ministers need to ensure that fiscal consolidation and tackling macroeconomic imbalances are pursued alongside growth-enhancing structural reforms. The Government do not agree with the focus on taxation in the annual growth survey; it is important that member states retain the flexibility to shape their own tax policies to suit their economic circumstances.
	Follow-up to the G20 meeting of finance deputies (Mexico, 19-20 January 2012)
	The presidency will give a debrief of the G20 finance deputies' meeting. Items include: the global economy and framework; strengthening of the international financial architecture; financial regulation including financial inclusion; and energy and commodities. This agenda item will provide further clarity on the direction that Mexico would like to take.
	Implementation of stability and growth pact
	Ministers will discuss the Commission's assessments of Belgium, Cyprus, Malta, Poland and Hungary's progress on correcting their excessive deficits. The Commission has assessed that the first four member states have taken effective action and no further steps under the excessive deficit procedure (EDP) are necessary. For Hungary, the Commission proposes to move to the next stage of EDP and recommends that the council decides that no effective action has been taken to bring the deficit below 3 per cent of GDP in a sustainable manner. Subject to this decision, the Commission may then propose new recommendations, with a view to Hungary effectively addressing its excessive deficit. The Government believe that sound public finances are essential for sustainable economic growth.
	Revised code of conduct of the stability and growth pact
	The presidency will ask Ministers to endorse a revised code of conduct. The code of conduct provides guidelines on: the implementation of the stability and growth pact and the content of stability and convergence programmes. The code of conduct has been updated in light of the new economic governance legislation. The Government support the revised code of conduct.
	Eurogroup plus meeting on 23 January
	Ministers will meet prior to ECOFIN on 23 January. They will discuss the intergovernmental agreement and follow-up to the December European Council. Ministers will also discuss the European stability mechanism. On growth and competitiveness, the Government are at the forefront of driving the EU growth agenda, and will continue to press for action. On the intergovernmental agreement, the Government will be engaging constructively in discussions. The UK will not be party to the new treaty.

EU: Justice and Home Affairs

Lord McNally: My right honourable friend the Lord Chancellor and Secretary of State for Justice (Kenneth Clarke) has made the following Written Ministerial Statement.
	The Home Office and the Ministry of Justice have prepared the second annual report to Parliament on the application of Protocols 19 and 21 to the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) (the treaties) in relation to EU Justice and Home Affairs (JHA) matters. The report is submitted on behalf of both my own department and that of the Secretary of State for the Home Department.
	On 9 June 2008 the right honourable Baroness Ashton, the then Leader of the House of Lords, made a Statement setting out commitments by the Government to Parliament in respect of the scrutiny of decisions to be taken by the Government in accordance with the protocol (No. 21) to the treaties on the position of the UK and Ireland in respect of the area of freedom, security and justice (the justice and home affairs opt-in protocol). These commitments were designed to ensure that the views of the scrutiny committees should inform the Government's decision-making process.
	This included a pledge that the Government would lay a report in Parliament each year and make it available for debate, both looking ahead to the Government's approach to EU justice and home affairs policy and forthcoming dossiers, including in relation to the opt-in, and providing a retrospective annual report on the UK's application of the opt-in protocol.
	On 20 January 2011, the Minister for Europe confirmed in his Statement to Parliament on enhancing parliamentary scrutiny of decisions in the area of EU justice and home affairs that the coalition Government have undertaken to maintain this commitment, and this is the second such report. It covers the period 1 December 2010 to 30 November 2011. For completeness the report also covers the application of Protocol 19 to the treaties on the Schengen acquis integrated into the framework of the EU (the Schengen opt-out protocol). The Government's decision-making process for this protocol is the same as for the justice and home affairs opt-in protocol.

Health: Transparency

Earl Howe: My honourable friend the Parliamentary Under-Secretary of State, Department of Health (Anne Milton) has made the following Written Ministerial Statement.
	Today I am publishing the new public health outcomes framework, Healthy Lives, Healthy People: Improving Outcomes and Supporting Transparency. This will help enable the Government, Public Health England, the NHS and local government to be held to account in how well we are doing in improving and protecting the nation's health. To do this, we have focused on the most important things we want to do to improve and protect the nation's health and well-being and improve the health of the poorest fastest.
	The White Paper Healthy Lives, Healthy People: Our Strategy for Public Health In England (Cm 7985) described a new era for public health, with a higher priority and dedicated resources. We set out the scope for a new public health system refocused around achieving positive health outcomes for the population and reducing inequalities in health. This public health outcomes framework sets the context for the system, from local to national level. This is a national framework and local priorities and objectives will be set through local health improvement plans. The framework sets out indicators to measure how we are improving and protecting health at key stages in peoples' lives and to reduce inequalities in health.
	We will continue to work across government and with our partners in public health, local government, the NHS, other public services and the third sector to improve the data we will rely upon to provide information on how we well we are doing to improve outcomes.
	Healthy Lives, Healthy People: Improving Outcomes and Supporting Transparency has been placed in the Library. Copies are available to honourable Members from the Vote Office and to noble Lords from the Printed Paper Office.
	The document is also available at www.dh.gov.uk/health/2012/01/public-health-outcomes.

Pensions

Lord Freud: My honourable friend the Minister of State, Department for Work and Pensions (Steve Webb), has made the following Written Ministerial Statement.
	The Government have today begun consultation on draft regulations to ensure domestic legislation reflects the effect of current European case law regarding the obligation on pension schemes to treat men and women equally.
	The draft regulations will amend domestic legislation to reflect the specific point that, where an inequality in pension scheme rules results from the legislation governing the guaranteed minimum pension, the scheme is required to equalise, even where no opposite sex comparator exists.
	The Government have been advised by a number of organisations that some schemes with guaranteed minimum pension liabilities have been finding equalisation action difficult. As we wish to offer as much help as is practical, we have also published today for consultation one possible method of equalisation.
	This suggested method of equalisation will not have any force of law and there will be no obligation on schemes to use it. However, the Government hope that experts in the pensions industry will engage constructively with it and, as a result, schemes will know that the revised version will have been published after a consideration of a large range of views.
	A copy of this consultation document will be placed in the House Library.

Political Lobbyists

Lord McNally: On 20 January 2012 my honourable friend the Minister for Political and Constitutional Reform (Mark Harper) made the following Written Ministerial Statement.
	Today the Government have launched a consultation on initial proposals to introduce a statutory register of lobbyists. The consultation will run until 13 April 2012 and a consultation paper (Cm 8233) is available on the Cabinet Office website. A copy of the consultation document will also be placed in the House Library.
	We believe the introduction of a statutory register will be an important step towards increasing transparency and rebuilding public trust in politics. Our initial proposals are that any individual or firm who lobbies for a third party for money must put themselves on the register and disclose their clients. We think it is important that the public should be able to see who is lobbying Ministers, and for whom. That is why there is already a requirement that Ministers should publish details of who they are meeting, at least quarterly. We believe it is right that lobbying companies should disclose who is paying them to lobby the Government.
	We suggest that individuals or companies lobbying for themselves should not be covered by a register because the disclosure requirements on Ministers will show this activity already. We hope for a wide range of responses on all our proposals, but we are particularly interested to hear views on whether organisations like NGOs and charities, which do not lobby for others for money but are advancing agendas, should be covered. We are also consulting as to how, if at all, trade union activities should be covered.
	The Government are clear that it is not our intention to propose that individuals taking up issues with Ministers, or companies discussing matters of mutual interest with the Government should be covered by the requirement to register. These are vital democratic functions and covered by the disclosure requirement on government departments. We are interested in views on whether our definitions meet this objective.
	Any proposals for a statutory register should not impinge on the ability of charities to lobby or on a constituent's ability to lobby their own MP.
	This is a complicated area, and we are hoping for a wide range of consultation responses to help us produce proposals which are proportionate and practical.

Railways: West Coast Franchise

Earl Attlee: My right honourable friend the Minister of State for Transport (Theresa Villiers) has made the following Ministerial Statement.
	In May last year, the then Secretary of State announced that the next intercity west coast franchise would start on 9 December 2012.
	The Department for Transport has today published an invitation to tender to mark the commencement of the formal bidding stage of the competition to replace the current operator on the west coast main line. The new franchise will continue through to March 2026, this date being aligned to the introduction of high speed services along the proposed HS2 route.
	Increasing capacity and tackling overcrowding is our priority. Some 106 extra Pendolino carriages are being provided for the west coast. In addition to the 45 per cent increase in capacity delivered in December 2008, 31 existing Pendolinos are being lengthened from nine to 11 carriages and four new trains are being introduced, increasing the number of standard-class seats on each train by almost 50 per cent, from 320 to 470.
	In all, the 106 new carriages will make 28,000 extra seats available each day, an increase of 25 per cent. We expect that the additional and lengthened trains will be targeted on those routes and times of day with the highest demand.
	It was further announced in May that a consultation would take place on a revised train service requirement (TSR). A summary of and response to this consultation has also been published today on the Department for Transport website.
	The TSR has been designed to give bidders greater flexibility to respond to passenger demand and run their businesses in a more commercial way within a framework set by the franchise that protects key outcomes for passengers, taxpayers and the economy. The TSR requires the provision of the same number of weekly stops at each station as set out in the current franchise; but will allow the franchisee to vary the capacity provided on individual days of the week in order to cater for the variations in daily demand.
	The ITT contains less specification than in previous competitions, with a stronger focus on outcomes-for example, on passenger satisfaction-rather than detailed prescriptive inputs. We expect the additional flexibility set out in the ITT to enable bidders to provide both a better service for passengers and an improved financial return for taxpayers.
	However, we will continue to specify core requirements and to manage overall compliance of key deliverables, such as performance and service quality. The franchise will contain new obligations based around passenger satisfaction with stations, trains and customer services.
	The franchise length of up to 15 years including an option to extend by 20 months is intended to encourage the development of long-term relationships between the operator and stakeholders, giving greater scope to challenge and reduce excessive industry costs. We also expect the certainty provided by a long franchise to encourage investment in assets such as stations, by extending the period over which commercially attractive schemes can pay back. The new franchisee will take over full repairing responsibilities for the 17 stations it manages. We believe that cost savings can be achieved through combining roles currently split between the operator and Network Rail in relation to stations.
	A new risk-sharing mechanism based on macroeconomic variables has been introduced to remove some of the perverse operator behaviour experienced under the cap and collar system, while still providing an appropriate allocation of risk between the taxpayer and the operator.
	Cap and collar led to stronger concentration on revenue generation schemes rather than on cost reduction because support was available in the event of underperformance on revenue. Our new risk-sharing mechanism helps create a more balanced approach to revenue and costs when bidders are considering how to develop their business.
	A profit share mechanism has been introduced to enable the taxpayer to benefit from a share in profits above an agreed threshold which the franchise has generated, while continuing to provide sufficient incentive for the franchisee to outperform.
	The franchise will specify the introduction of ITSO-based smart ticketing. The introduction of smart ticketing will provide significant benefits for passengers and the use of the ITSO standard will enable the same card to be used on a range of different public transport services.
	The intercity west coast ITT takes forward the franchising reforms set out in January 2011. Given the diversity of the rail network, our approach will be adapted to meet the individual requirements of different franchises. Future franchise contracts will not be identical but common themes will underlie all of them, including an emphasis on innovation, passenger satisfaction and greater commercial freedom to respond to the needs of passengers.

Schools: Transport

Lord Hill of Oareford: My right honourable friend the Secretary of State for Education (Michael Gove) made the following Written Ministerial Statement.
	I am required under Section 80(1) of the Education and Inspections Act 2006 (EIA 2006) to prepare and publish, before 1 January 2012, an evaluation of the operation and effect of school travel schemes approved under Schedule 35C to the Act.
	The School Travel (Piloting of Schemes) (England) Regulations 2007 made provision for the piloting of the school travel schemes and listed the information which local authorities were required to include in their applications to pilot such schemes. As none of the schemes submitted fully met the criteria, none of the schemes was approved, and consequently there is no evaluation to publish. I am therefore proposing, by means of an order under Section 80(2) EIA 2006, to provide for the cessation of the school travel scheme provisions in Section 508E of and Schedule 35C to the Education Act 1996. The order will specify 1 August 2012 or a date shortly after on which the provisions are to cease. The earliest date cessation can be effected under Section 80(3) EIA 2006 is 1 August 2012.

Shipping: Maritime Training Scheme

Earl Attlee: My honourable friend the Parliamentary Under-Secretary of State for Transport (Mike Penning) has made the following Ministerial Statement.
	Further to my announcement of 22 June 2011, I would like to inform Parliament of the outcome of the independent review into the requirement for government support for Merchant Navy training and skills development and how best to spend any continuing government funding.
	I have concluded that continuing government support for maritime training is required. The consultants' findings, accepted by the independent panel, were that there was a good value-for-money case for the retention of government funding. Evidence was presented to me showing that for each working year of a seafarer who has benefited from government funding, approximately £14,500 in additional output is created relative to that of a UK worker displaying average productivity.
	With over 90 per cent of the UK's import and export trade by weight transported by the maritime sector, I believe continuing government support in this area will reflect our ongoing commitment to economic growth and will help to maintain the competitiveness of this sector.
	I have therefore decided to provide a budget of £12 million a year for support for the maritime training scheme for the remainder of this Parliament. In view of the forecast national shortage of trained seafarers and the need to develop the next generation of UK officers and ratings, I intend that the majority of the budget be focused on supporting initial training for cadets studying at junior officer level with the remainder supporting ratings' training and ratings-to-officer conversion training.
	I will be making a number of minor changes to the current scheme to achieve greater value for money by maximising the intake of trainees while ensuring more rigorous accountability structures are in place.
	These changes are consistent with the Government's wider commitment to improve the transparency and accountability of public spending.
	I will also be considering longer-term options to deliver Merchant Navy training within an overarching skills and apprenticeship framework.
	A copy of the consultants' findings and the recommendations made by the independent panel have been placed in the Library of the House.